The global landscape is shifting in ways that should concern every European policymaker. China and India are investing at unprecedented scale in clean technologies. The United States has deployed industrial policy with speed and conviction. Meanwhile, Europe – despite still today leading on the clean transition – faces weak demand, high energy prices in many regions, unpredictable policy signals, and a surge of low-cost imports that undermine domestic industry.
Asia now melts twice as much stainless steel as it consumes, while Europe imports stainless volumes equal to 30% of its demand – frequently from countries with lower environmental standards and heavy state support. Meanwhile, European companies must continue decarbonizing rapidly while navigating geopolitical tensions, supply-chain disruptions, and fragmented regulation.
This was the backdrop for our CEO panel at COP30, where I joined leaders from Traton Group and Norsk Hydro. Later, in a fireside chat, I reflected on what these dynamics mean for Europe’s metals ecosystem and for Outokumpu’s path ahead. Across both discussions, one message was clear: Europe must align climate ambition with industrial resilience. If we fail to do so, we will undermine our own transition.
You can watch the highlights from the panel above, and parts of my fireside chat with Financial Times journalist Emiliya Mychasuk can be viewed below – or read on to learn more about the key insights from my time at COP30.
Industrial policy must be bold – and collaborative
In both discussions we covered the convergence of climate policy and industrial strategy. They can no longer be treated as separate debates.
My first year as Outokumpu’s CEO coincided with some of the most unpredictable trade shifts in decades:
- 50% tariffs on US steel imports under Section 232
- Sudden policy reversals between the US and Mexico
- Asian overcapacity pushing low-priced imports into Europe
- Weak European demand and the loss of export competitiveness to the US
For companies operating globally, these significant factors shaping investment decisions and the viability of operations.
Europe must decide which strategic industries it needs for long-term competitiveness and security. Low-emission stainless steel and aluminum are foundational for energy systems, mobility, construction, and defense. Losing these capabilities would increase dependency on suppliers whose climate standards and geopolitical priorities diverge sharply from Europe’s.
The European Commission’s new Metals and Steel Action Plan is a welcome acknowledgment that Europe cannot achieve its climate, digital, or defense goals without competitive domestic metals. But recognition alone is not enough.
Beyond CBAM, one powerful tool remains underused: lead markets. Public procurement for bridges, trains, mobility infrastructure, and government buildings could immediately increase demand for low-emission materials. This would reward innovation, accelerate scale, and prove that sustainable metals are not niche products but essential components of a modern industrial economy.
Fair competition requires effective carbon pricing
Despite the contradictory final outcome of COP30, momentum for robust, predictable carbon pricing was evident. Today, 28% of global emissions fall under carbon pricing schemes. New systems are advancing in Brazil, India, and Turkey, and China expanded carbon pricing to steel in 2025.
Yet Europe risks weakening its own mechanisms. The postponement of ETS2 and proposals to cap carbon prices create uncertainty precisely when industry needs long-term visibility. These regulatory shifts discourage investment and allow high-emission imports to undercut Europe’s cleaner producers.
This is particularly relevant for our sector. Global steel production accounts for roughly 10% of global industrial CO₂ emissions. Outokumpu, after decades of investment in recycling, low-emission energy, and process innovation, produces stainless steel with a 75% lower carbon footprint than the global industry average – helping customers significantly reduce Scope 3 emissions.
But these advantages matter only if market conditions reward them. With Europe importing stainless steel equivalent to 30% of its demand – much of it produced with weaker standards and heavy subsidies – domestic climate leaders risk being priced out of their own market. Without an enforceable CBAM and stable ETS, the system penalizes the very companies advancing the transition.
Europe cannot maintain climate leadership without protecting the integrity of its own policy tools. That’s why we’re asking policymakers to close the loopholes in CBAM and avoid carbon leakage.
Clarity and confidence can drive climate action and competitiveness
Climate change is accelerating, global competition is intensifying, and the world’s major economies are not slowing their industrial strategies. If anything, the transition may advance faster outside Europe than expected.
There are clear steps that can be taken to shore up Europe’s competitiveness and drive climate action:
- Safeguards implemented on time
- Strengthen carbon pricing and avoid long-term caps that weaken ETS.
- Make CBAM effective by closing loopholes and enforcing equal carbon costs for imports.
- Create lead markets through public procurement that rewards low-carbon materials.
- Provide predictable frameworks for long-term investment, including stable electricity pricing and coordinated industrial policy.
- Deepen cooperation with partners globally to secure responsible raw materials, establish fair competition and increase supply chain transparency initiatives.
Europe has the innovation capacity, skills, and sustainability leadership to thrive in the next industrial era. But leadership requires clear choices—and those choices must be bold. Acting with confidence and coherence will determine whether Europe achieves its climate goals while preserving industrial resilience and strategic autonomy.